DuPont(DD) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 reached $3.1 billion, a 7% increase compared to Q4 2023, driven by an 8% increase in volume[1][3][4] - Full year 2024 net sales totaled $12.4 billion, a 3% increase year-over-year, with organic sales growth of 1%[1][14][17] - Total net sales for the three months ended December 31, 2024, reached $3,092 million, a 6.7% increase from $2,898 million in the same period of 2023[62] - Electronics & Industrial segment net sales for Q4 2024 were $1.5 billion, an 11% increase year-over-year, with a 10% organic sales growth[1][8][10] - Water & Protection segment net sales for Q4 2024 were $1.4 billion, a 6% increase year-over-year, with a 6% organic sales growth[1][12][10] - Net sales attributed to China/Hong Kong for the three months ended December 31, 2024, were $584 million, an increase from $537 million in 2023[63] Earnings and Profitability - GAAP loss from continuing operations improved to $(61) million in Q4 2024, an 80% reduction from $(300) million in Q4 2023[1][4] - Adjusted EPS for Q4 2024 was $1.13, reflecting a 30% increase from $0.87 in Q4 2023[1][4] - GAAP income from continuing operations for the full year 2024 was $778 million, a 46% increase from $533 million in 2023[1][14] - Total net income for 2024 was $738 million, compared to $462 million in 2023, reflecting a 59.5% year-over-year increase[60] - Reported GAAP results for the twelve months ended December 31, 2024, show a net income of $743 million and an EPS of $1.77[78] - Adjusted earnings for 2023 were reported at $1,570 million, with an EPS of $3.48[78] Cash Flow and Debt - Transaction-adjusted free cash flow for Q4 2024 was $455 million, with a cash conversion rate of 96%[1][6][20] - Adjusted free cash flow for the three months ended December 31, 2024, was $403 million, down from $501 million in the same period of 2023[68] - The company reported a significant reduction in long-term debt from $7,800 million in 2023 to $5,323 million in 2024, a decrease of 31.7%[57] - Cash and cash equivalents decreased to $1,850 million in 2024 from $2,392 million in 2023, a decline of 22.7%[57] Operational Metrics - Operating EBITDA for Q4 2024 was $807 million, a 13% increase from $715 million in Q4 2023, with an operating EBITDA margin of 26.1%[1][4][6] - Operating EBITDA margin increased by 50 basis points to 25.1%, despite a decrease in operating EBITDA due to volume decline and higher variable compensation[29] - The total organic sales growth for the Electronics & Industrial segment was 11% for the three months ended December 31, 2024[62] Future Guidance and Strategic Plans - Estimated net sales for Q1 2025 are approximately $3.025 billion, reflecting mid-single digit organic growth and a foreign currency headwind of about 1.5% year-over-year[28] - Full year 2025 net sales guidance is between $12.8 billion and $12.9 billion, with operating EBITDA projected at $3.325 billion to $3.375 billion[28] - Adjusted EPS for Q1 2025 is estimated at approximately $0.95 per share, with full year 2025 adjusted EPS guidance between $4.30 and $4.40[28] - The company expects to separate its Electronics business by November 1, 2025, focusing on high-growth opportunities in Water and Healthcare[1][6] - DuPont plans to separate its Electronics and Water businesses, targeting completion of the Electronics separation by November 1, 2025[33] Costs and Charges - The company incurred acquisition, integration, and separation costs of $117 million in Q4 2024, up from $5 million in Q4 2023[56] - Total significant items for 2024 amounted to a pretax loss of $488 million, impacting net income by $524 million, resulting in an adjusted earnings of $1,712 million[78] - Acquisition, integration, and separation costs for 2024 were $168 million pretax, affecting net income by $144 million[78] - Restructuring and asset-related charges for 2024 totaled $87 million pretax, impacting net income by $65 million[78] - The amortization of intangibles for 2024 was $595 million, affecting net income by $460 million[78] Research and Development - Research and development expenses increased to $138 million in Q4 2024 from $128 million in Q4 2023, indicating a focus on innovation[56] Shareholder Information - The weighted-average common shares outstanding decreased from 430.3 million in Q4 2023 to 418.3 million in Q4 2024, reflecting a reduction in share count[56] - The Intended Electronics Separation will not require a shareholder vote and is subject to customary conditions, including final board approval and regulatory approvals[33]